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Exhibit 2- Safety National Insurance Proposal Insurance Proposal for City of Denton, TX Policy Effective Date 12/31/2021 Policy Expiration Date 12/31/2022 2 Date: 11/23/2021 To: Lockton Companies Attention: Neil Cohen From: Codi Bolding Named Insured: City of Denton We are pleased to present the following proposal for your consideration and review. This proposal is valid until the effective date indicated in this proposal. Line of Coverage Premium and Surcharges General Liability Coverage $68,882 Commercial Automobile Liability Coverage $72,898 Commercial Automobile Physical Damage Coverage $137,068 **Public Officials Liability Coverage $55,909 **Law Enforcement Liability Coverage $77,101 Excess Liability $60,168 Total $472,026 Optional TRIA Coverage: (excluded in pricing above) Line of Coverage Premium and Surcharges GL TRIA $620 Excess TRIA $1,805 Indicated premiums are based on all quoted lines of coverage, including Excess Workers’ Compensation Insurance, being bound according to the terms and conditions included within Safety National’s proposals. With the exception of Surplus Lines, the taxes, surcharges, assessments and other program costs are included within the premium for each line of coverage offered by Safety National Casualty Corporation. Premiums are fully earned when bound. ** These coverages are offered by Safety Specialty Insurance Company, a Surplus Lines Carrier. Premium does not include any surplus lines taxes and fees. Filing, collection and remittance of all Surplus Lines taxes and fees will be your responsibility. Safety National may consider providing revised or additional quote options for individual lines of coverage subject to further underwriting review and approval. Unless otherwise noted, all references in this proposal to policy coverage parts and forms, depicts the product offering of Safety National. These may deviate from the coverage requests or wording contained within the Producer Specifications or other portions of the account submission. Any deviations from this proposal must be approved and authorized by Safety National, in writing. For additional information on the products and services proudly provided by Safety National, please visit our website: www.safetynational.com 3 General Contingencies and Comments Commission This proposal is net of commission. Risk Control Services All Safety National Clients have access to MAP, our online Safety and Risk Control resource. The City of Denton has $10,000 of Risk Control Funds to use during this policy period. Coverage Contingencies The casualty program is contingent upon also binding the Excess Workers’ Compensation program with Safety National. Premiums quoted are based on all coverages offered within this proposal, and within any Excess Workers’ Compensation proposal offered by Safety National, being written by Safety National Casualty Corporation or Safety Specialty Insurance Company. Installments/Payment Schedule All lines are on an Annual Pay Plan. Premiums due within 30 days of binding. Premiums are fully earned when bound. Claims Administration Claims are handled by Gallagher Bassett. TPA Fees TPA fees are NOT included within the premium or costs of the quoted Safety National program, unless otherwise noted herein. Annual Audits General Liability, Auto Liability, and Specialty Lines are not auditable. Surplus Lines Taxes and Fees The broker is responsible for the filing, collection, and remittance of all applicable surplus lines taxes and fees. 4  Management: Several resources that offer a wealth of information and assistance to help your organization develop and maintain a successful safety and claim cost management program.  Analysis: A variety of tools that provide the ability to measure, benchmark, and analyze different aspects of your programs to clearly identify opportunities for improvement.  Prevention: A selection of assets to help improve your loss prevention and mitigation efforts – from educating employees about potential injury exposures, to helping build proficient post-injury protocol. Resources include: Safety Essentials Online: This online resource library provides customizable and downloadable training tools to help improve safety and health compliance, best practices, policies, and written programs. S:ERVE: Safety Emergency Responder Vehicle Education (S:ERVE) is an online driver simulation and curriculum created to educate first responders to drive at their safest during intersection negotiation scenarios. Distracted Driving Course: A course designed to train all employees that drive on the job. Through online simulation, employees will learn how to eliminate controllable distractions and how to make necessary adjustments for uncontrollable distractions. Ask Best Doctors: A Best Doctors specialist will perform three phases of this program for injured workers at high risk for adverse developments in their medical condition. Available exclusively to our workers’ compensation policyholders. Crisis Protection: A benefit in place if your entity undergoes a qualifying “Domestic Crisis Event” which aids in crisis management, public relations, or emergency psychological treatment. Available exclusively to our workers’ compensation & general liability policyholders. HR Essentials Online: A Human Resource management and compliance resource library. From hiring practices and writing job descriptions, to training managers and understanding the ever-complicated leave laws, this tool delivers the HR resources that every organization needs to succeed. Available exclusively to our employment practices liability policyholders. Law Enforcement Liability Resources: A best practices resource program to help address your current program’s capabilities and develop formal policies and procedures to address areas that are particularly vulnerable to lawsuits, including jail and detention operations, use of force, and arrest procedures. Available exclusively to our law enforcement liability policyholders. For more information, please contact MAP Client Services at map@safetynational.com or 888-995-5300. 5 Commercial General Liability Proposal Safety National Casualty Corporation A.M. Best Rating A++ XV Self-Insured Retention Program Named Insured City of Denton Effective Date 12/31/2021 Expiration Date 12/31/2022 CGL Coverage Form (CG 00 01) Limits of Liability General Aggregate Limit $4,000,000 Other than Prod/Comp Ops Products/Completed Operations Aggregate Limit $4,000,000 Each Occurrence Limit $2,000,000 Combined BI & PD Personal and Advertising Injury Limit $2,000,000 Any One Person or Org Damages to Premises Rented to You Limit $500,000 including Fire Damage Legal Employee Benefits Liability Coverage Limits of Liability Claims Made Form (SNGL 054) Aggregate Limit $4,000,000 Each Employee Limit $2,000,000 Retroactive Date Per Expiring Coverage Retention Form (SNGL 024) Amount ALAE Treatment CGL - Each Occurrence $500,000 ALAE Within Retention Paid By Insured Personal and Advertising Injury $500,000 Damages to Premises Rented to You $500,000 Employee Benefits Liability $500,000 Terms, Conditions, and Subjectivities include, but are not limited to: • Please provide the expiring Employee Benefits Liability retroactive date upon binding coverage. If on Occurrence, the retro date will be 12/31/21. • Confirm in writing that no liability claims have pierced the $500,000 retention x 10 years. • Confirm in writing that the City no longer has an operable coal or nuclear energy facility, and that they do not have any plans to operate the like in the future. 6 General Liability Coverages / Endorsements Mandatory State Endorsements As required by covered states Access or Disclosure of Confidential or Personal Information And Data-Related Liability Exclusion CG 21 07 Amended Definition of Bodily Injury SNGL 004 Asbestos Exclusion SNGL 044 Co-Employee Exclusion Deleted SNGL 012 Coverage C- Medical Payments Exclusion CG 21 35 Deletion of Premium Audit Condition SNGL 053 Designated Additional Insured (Broad Form) SNGL 022 Employee Benefits Liability Coverage with Self- Insured Retention SNGL 054 Employment Related Practices Exclusion CG 26 39 ERISA Exclusion SNGL 002 Failure to Supply Exclusion CG 22 50 Fungi or Bacteria Exclusion CG 21 67 Governmental Subdivisions Endorsement CG 24 09 Incidental Medical Coverage for: licensed nurses, psychologist, physical therapist, hearing, language or speech therapist, EMT, paramedic, or athletic trainer Manuscript Injury to Volunteer Firefighters Exclusion CG 22 56 Law Enforcement Exclusion CG 22 51 Lead Exclusion SNGL 043 Nuclear Energy Liability Exclusion IL 00 21 Self-Insured Retention Endorsement SNGL 024 Sexual Abuse or Molestation Coverage GLM 007-2 Silica Exclusion CG 21 96 Pollution Exclusion – Limited Exception for: hostile fire, emergency operations, HVAC, mobile equipment, road treatment chemicals, pesticides/herbicides, water treatment, above ground tanks, water/sewage operations CG 04 30/Manuscript Unintentional Failure to Disclose Hazards or Occurrences SNGL 021 TRIA Policyholder Disclosure Notice Per attached disclosure- Signed copy must be received prior to binding of coverage 7 POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE (General Liability) You are hereby notified that under the Terrorism Risk Insurance Act of 2002, as amended, extended, and/or re-authorized, you have a right to purchase insurance coverage for losses resulting from acts of terrorism, as defined in Section 102(1) of the Act: The term “act of terrorism” means any act that is certified by the Secretary of the Treasury – in concurrence with the Secretary of State and the Attorney General of the United States – to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMULA, THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 80% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS THAT MAY BE COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT. YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A $100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT, AS WELL AS INSURERS’ LIABILITY, FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM. IF THE AGGREGATE INSURED LOSS FOR ALL INSURERS EXCEEDS $100 BILLION IN A CALENDAR YEAR, YOUR COVERAGE MAY THUS BE REDUCED. Acceptance or Rejection of Terrorism Insurance Coverage with regard to General Liability I hereby elect to purchase terrorism coverage for a prospective premium of $620. I hereby decline to purchase terrorism coverage for certified acts of terrorism. I understand that I will have no coverage for losses resulting from certified acts of terrorism. _____________________________________ Safety National Casualty Corporation® Applicant’s Signature Insurance Company _____________________________________ Insured Name ____________________________________ Date Signed 8 Commercial Auto Liability Proposal Safety National Casualty Corporation A.M. Best Rating A++ XV Self-Insured Retention Program Named Insured City of Denton Effective Date 12/31/2021 Expiration Date 12/31/2022 CA Coverage Form (CA 00 01) Symbol Limits of Liability Auto Liability – Any One Accident 1 $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Personal Injury Protection (PIP) 5 Excluded Auto Medical Payments 2 Excluded Uninsured/Underinsured Motorist (UM/UIM) 6 Excluded Physical Damage Coverage Symbol Limits of Liability Comprehensive Coverage 8 ACV Collision Coverage 8 ACV Coverage Retention Form (SNCA 022) Amount ALAE Treatment Auto Liability – Any One Accident $500,000 ALAE Within Retention Paid By Insured Comprehensive Coverage $50,000 deductible for units valued $100,000 - $599,999; $100,000 deductible for units valued $600,000 and greater Collision Coverage $50,000 deductible for units valued $100,000 - $599,999; $100,000 deductible for units valued $600,000 and greater Terms, Conditions, and Subjectivities include, but are not limited to: • Confirm no APD claims pierced $50,000 x 10 years prior to binding coverage. 9 Automobile Liability Coverages / Endorsements Mandatory State Endorsements As required by covered states Amphibious Vehicles CA 23 97 Audio, Visual, & Data Electronic Equipment Coverage- Fire, Police, & Emergency Vehicles CA 20 02 Auto Physical Damage Deductibles Applies to Fire & Lightning CAM 002 Broad Form Named Insured SNCA 038 Covered Auto Designation Symbol 8 CA 99 54 Emergency Services - Volunteer Firefighters’ and Workers’ Injuries Excluded CA 20 30 Exclusion of Federal Employees Using Autos in Government Business CA 04 42 Hired Autos Specified as Covered Autos you Own CA 99 16 Nuclear Energy Liability Exclusion IL 00 21 Public Entity Endorsement SNCA 029 Public Transportation Autos CA 24 02 Self-Insured Retention Endorsement SNCA 022 Silica Exclusion CA 23 94 Unintentional Failure to Disclose Material Facts SNCA 028 Unintentional Failure to Provide Notice of Accident or Loss SNCA 030 Waiver of Premium Audit Condition CAM 001 UM/UIM, PIP, and/or Med Pay coverage If the insured’s intent is to reject UM/UIM, PIP, and/or Med Pay coverage in states that allow total rejection and the state mandatory forms are not signed, dated and returned prior to a loss, the insured’s SIR will apply to the claim, if payments are made. 10 Public Officials & Employment Practices Liability Proposal Safety Specialty Insurance Company A.M. Best Rating A++ XV Self-Insured Retention Program Named Insured City of Denton Effective Date 12/31/2021 Expiration Date 12/31/2022 POL/EPL Coverage Form (POEPOF 0416) Limits of Liability Occurrence Form Annual Aggregate Limit $2,000,000 Each Wrongful Act $2,000,000 Coverage Retention Form (ILSIR 0716) Amount ALAE Treatment Each Wrongful Act $500,000 ALAE Within Retention Paid By Insured Forms: • Mandatory State Forms • Non-Stacking of Limits Endorsement – Form ILNONSTACK 0416 11 Law Enforcement Liability Proposal Safety Specialty Insurance Company A.M. Best Rating A++ XV Self-Insured Retention Program Named Insured City of Denton Effective Date 12/31/2021 Expiration Date 12/31/2022 LEL Coverage Form (LELPOF 0416) Limits of Liability Occurrence Form Annual Aggregate Limit $2,000,000 Each Occurrence Limit $2,000,000 Coverage Retention Form (ILSIR 0716) Amount ALAE Treatment Each Occurrence (including LAE) $500,000 ALAE Within Retention Paid By Insured Forms: • Mandatory State Forms • Non-Stacking of Limits Endorsement – Form ILNONSTACK 0416 12 Commercial Excess Liability Proposal Safety National Casualty Corporation A.M. Best Rating A++ XV Self-Insured Retention Program Named Insured City of Denton Effective Date 12/31/2021 Expiration Date 12/31/2022 Commercial Excess Coverage Form (CX 00 01) Limits of Liability General Aggregate Limit $3,000,000 Each Occurrence Limit $3,000,000 Underlying Insurance Limits of Liability General Liability Coverage $2,000,000/$4,000,000 Commercial Automobile Liability Coverage $2,000,000 CSL Public Officials Liability Coverage $2,000,000/$2,000,000 Law Enforcement Liability Coverage $2,000,000/$2,000,000 All underlying coverages must be bound through Safety National Casualty Corporation or Safety Specialty Insurance Company. Exclusions: In addition to all exclusions in the underlying Insurance, the following will also be excluded: 1.) Terrorism CX 21 33 2.) Failure to Supply XLM 001 13 POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE (Excess Liability) You are hereby notified that under the Terrorism Risk Insurance Act of 2002, as amended, extended, and/or re-authorized, you have a right to purchase insurance coverage for losses resulting from acts of terrorism, as defined in Section 102(1) of the Act: The term “act of terrorism” means any act that is certified by the Secretary of the Treasury – in concurrence with the Secretary of State and the Attorney General of the United States – to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMULA, THE UNITED STATES GOVERNMENT GENERALLY REIMBURSES 80% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS THAT MAY BE COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT. YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A $100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT, AS WELL AS INSURERS’ LIABILITY, FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM. IF THE AGGREGATE INSURED LOSS FOR ALL INSURERS EXCEEDS $100 BILLION IN A CALENDAR YEAR, YOUR COVERAGE MAY THUS BE REDUCED. Acceptance or Rejection of Terrorism Insurance Coverage with regard to Excess Liability I hereby elect to purchase terrorism coverage for a prospective premium of $1,805. I hereby decline to purchase terrorism coverage for certified acts of terrorism. I understand that I will have no coverage for losses resulting from certified acts of terrorism. _____________________________________ Safety National Casualty Corporation® Applicant’s Signature Insurance Company _____________________________________ Insured Name ____________________________________ Date Signed